New Delhi: The cabinet on Wednesday allowed an Export Credit Guarantee Corporation (ECGC) listing, while cleaning the investment of up to RS 6,000 Crore in a company that offered insurance protection to exporter and trust in the national export insurance account.
While the equity of RS 500 Crore will be provided soon for ECGC, a suitable amount will be given next year, along with the list.
The remaining funds, the Minister of Trade and Piyush Industry Goyal said, will be given depending on needs.
He said part of equity requirements can also be fulfilled through a new stock problem at the time of the IPO, which is likely next year.
For almost a year, the government has weighed the choice to strengthen ECGC, while joining the released public sector company league.
The cabinet decision to provide equity support can be spread over five years, officials added.
The government hopes that the corpus will be useful in doubling the maximum liability of more than Rs 2 Lakh Crore.
Likewise, Crore RS1.650 allocated to trust the national export insurance account is intended to increase project exports.
This export is usually targeted in West Asian and African countries and also helps the Indian content.
“Corpus contributions from RS 1,650 Crore will increase trust guarantee capacity and will enable Neia to support project exports worth RS 33,000 Crore on the utilization of full capacity which in turn will be translated into the estimated output of domestic goods to Rs 25,000 Crore approximately,” Official statement said.
Neia Trust expands support to cover the ECGC Project Export and to Exim Bank for buyer’s credit related to the project exports from India.
Goyal said that the latest step is part of the overall training to increase exports, with the government set an ambitious target of $ 400 billion this year.